On Monday, Chinese AI startup DeepSeek was targeted by significant cyberattacks, coinciding with its growing prominence in the AI sector.
What Happened: DeepSeek reported being targeted by “large-scale malicious attacks” on its services. The company has temporarily restricted new user registrations following these incidents.
The attacks coincided with outages on DeepSeek’s website, which occurred after its AI assistant became the top-rated free app on Apple Inc.'s AAPL App Store in the U.S.
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Why It Matters: The emergence of DeepSeek as a formidable player in the AI landscape has raised eyebrows globally. Chinese quant firm High-Flyer-backed DeepSeek unveiled its R1 language model (LLM) as an open-source offering earlier this month.
The model dubbed as ChatGPT killer boasts 50 times lower costs than OpenAI. It uses a hybrid architecture for enhanced accuracy.
Over the weekend, Aravind Srinivas, CEO of Perplexity, also applauded DeepSeek’s achievement of becoming the top-rated app on the App Store.
On Monday, Nvidia Corporation NVDA stock came under pressure as investors digested the emergence of a formidable ChatGPT-rival DeepSeek. The Chinese startup’s researchers said their model’s impressive performance was underpinned by Nvidia H800 chips that cost under $6 million. Nvidia responded by noting that DeepSeek was fully export control compliant.
However, analysts like Gene Munster from Deepwater Asset Management believe the market may be overreacting.
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